Into the Weeds: CDC on Hired Cannabis Drivers, Ontario App Ordering and Delta-8 Testing | McGuireWoods LLP

Current highlights

CDC publishes ‘best practices’ for companies on employee drivers and cannabis use. The Centers for Disease Control and Prevention (CDC) has issued workplace guidelines for creating marijuana policies and drug testing procedures for employed drivers, including educating drivers about the effects of marijuana on safe driving. The CDC has promoted a policy prohibiting employees from using marijuana at work, but recognized that a zero tolerance policy for marijuana use may not be possible, depending on applicable state law. As the recreational use of marijuana increases, especially as more states legalize it, the CDC believes it is important that all workplaces implement and address policies on the use of marijuana. marijuana in their motor vehicle safety programs.

Uber Canada announces partnership with Tokyo Smoke to order cannabis in Ontario. Uber Canada has announced its partnership with Tokyo Smoke, a cannabis retailer, to offer the order in the cannabis category of the Tokyo Smoke Flower Collection on the Uber Eats app. Customers can then pick up their orders at the Tokyo Smoke Store within an hour. According to the press release, Tokyo Smoke is the first cannabis merchant to use Uber Eats software. Customers will receive a warning that they must be of legal age to enter the virtual storefront through the app. Customers must provide appropriate identification to the store, as required by Canadian regulations.

Delta-8 test. On December 2, 2021, the nonprofit scientific organization US Pharmacopeia (USP) released a statement on delta-8 THC, offering several considerations to help prevent harm to consumers resulting from substandard, contaminated, or adulterated products. containing the cannabinoid. While federal law limits the delta-9 THC content in hemp to no more than 0.3% on a dry weight basis, the content of other cannabinoids or their isomers, such as delta-8 THC, does not are not explicitly limited. According to the USP, products labeled as containing delta-8 THC have a high probability of being synthetically derived under conditions that may be conducive to the formation of reaction byproducts and impurities. The organization has proposed a number of mitigation strategies, including systematic clinical investigations, the use of scientifically valid analytical methods, and the recognition of risks associated with other synthetic cannabinoid modifications (such as delta-10 THC and hexahydrocannabinol). The USP has emphasized that synthetic-derived cannabinoids are not inherently dangerous if they are quality controlled and if they are shown to be safe in systematic studies.

Highlights of Federal / State Legislation

The new California law standardizes weed control tests. California has about 40 weed testing facilities that have historically faced inconsistent testing issues and inconsistencies in the lab. In October 2021, Governor Gavin Newsom signed Senate Bill 544, which requires the Cannabis Control Department to create criteria and guidelines for standardized testing of cannabis compounds, pesticides and other contaminants. . The intention of the law is to raise the standards of quality and reliability in the cannabis industry, which in turn will protect consumers and minimize false test results. In addition, standardized testing procedures will help consumers ensure that the labels of cannabis products are accurate. Standardized methods must be implemented by January 1, 2023, under the new law. The new standards will be implemented at two state-of-California-run labs to determine operating procedures before being rolled out to other cannabis testing labs statewide. This initiative is part of a state partnership with the University of California at San Diego, which will be one of two state-run labs. New Jersey and New York State also have standardized cannabis testing practices in place.

A small percentage of cities in New York City are withdrawing from recreational cannabis. Local New York City municipalities have until December 31, 2021 to decide whether to “join” or “refuse” to allow retail cannabis dispensaries to operate in their jurisdictions now that cannabis is legal in their jurisdictions. the state. Based on current data from the Association of Cities of New York, only 9% of towns and cities have chosen to opt out of legal cannabis dispensaries and cannabis retailing in their townships. A city has the possibility of re-registering later; however, the state will issue a limited number of dispensary licenses. A Cities Association research director said the 9 percent is not expected to rise significantly until the end of the year, and the withdrawal percentage is expected to remain low.

Loans to cannabis companies begin in New Mexico. With cannabis for adults set to begin next year, the New Mexico Legislature’s Finance Authority Oversight Committee recently approved a process for the New Mexico Finance Authority (NMFA) to begin. to provide loans to cannabis companies. The NMFA is a state agency responsible for providing low-cost financing to businesses in New Mexico to help support state infrastructure. With the approval of the loan program, the NMFA will be able to provide up to $ 250,000 to businesses whose owners have been affected by previous New Mexico drug laws or are located in rural communities. This program gives New Mexico an advantage in growing cannabis infrastructure. Loan applications will be available on February 1, 2022.

Nevada Cannabis Compliance Board Takes Action on Tax Defaults. The Nevada Cannabis Compliance Board has filed a disciplinary complaint against NNV OPERATIONS I, INC., Doing business as Silver State Cultivation, for allegedly failing to remit tax payments properly. According to the complaint, a routine investigation was opened after Silver State Cultivation’s bank returned several payments due to insufficient funds. The complaint alleges a history of intentional or unintentional failure to make tax payments owed for six separate periods. The complaint seeks the revocation of four separate licenses and civil penalties against Silver State Cultivation in the amount of $ 90,000 if the violations are intentional and, alternatively, of $ 220,000 if unintentional. Silver State Cultivation has the option of requesting a hearing.

Highlights of Investments and Transactions

Harborside Partners With Urbn Leaf Cannabis And Loudpack To Form StateHouse Holdings Inc. Harborside Inc., a vertically integrated California cannabis company, has announced that it has entered into definitive agreements to acquire Urbn Leaf, a California cannabis retailer, and Loudpack, a cannabis manufacturer, grower and distributor. According to the announcement, once the transaction is complete, Harborside will be renamed StateHouse Holdings. The consideration for the transaction will be through the issuance of subordinate voting shares of Harborside, the assumption and restructuring of debt and the issuance of 2 million warrants at an exercise price of $ 2.50 (US) per Subordinate Voting Share.

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